Emami Paper Mills Limited has published its Business Responsibility and Sustainability Report (BRSR) for FY2025-26, providing a detailed account of its environmental, social, and governance (ESG) performance on a standalone basis. The report, prepared in accordance with the National Guidelines on Responsible Business Conduct (NGRBC), covers the Company's operations, workforce, sustainability initiatives, and stakeholder engagement practices for the reporting period.

Corporate Profile and Financial Overview

Incorporated in 1981 and headquartered at 687, Anandapur, E. M. Bypass, Kolkata - 700107, Emami Paper Mills Limited is listed on both the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The Company's paid-up capital structure comprises Equity Share Capital of ₹12.10 crores, Non-Convertible Non-Cumulative Redeemable Preference Shares (NCRPS) of ₹35 crores, and Optionally Convertible Non-Cumulative Redeemable Preference Shares of ₹18.75 crores.

The following key financial and operational metrics are reported for FY2025-26:

Products, Operations, and Markets

Emami Paper Mills derives 100% of its turnover from the manufacturing and selling of Multilayer Coated Paperboard, Newsprint, Writing & Printing Paper, and Specialty Paper (NIC Code: 1701). The Company operates one plant and four offices nationally, with no international operations. It serves a diversified B2B customer base comprising packaging converters and processors, food and pharmaceutical product companies, publishers, educational institutions, commercial printers, media houses, and international clients, supported by its pan-India distribution network.

Workforce and Employee Well-being

As at the end of FY2025-26, the Company's workforce comprised the following:

The Board of Directors comprises 10 members, of whom 2 (20%) are women. All 686 permanent employees are covered under health and accident insurance, and 100% of permanent workers receive provident fund and gratuity benefits. The Company is certified as a Great Place to Work and maintains an ISO 45001:2018-certified Occupational Health & Safety Management System covering 100% of its workforce.

Median remuneration figures for FY2025-26 are as follows:

*KMP does not include those already reported under the BoD category.

Sustainability and Environmental Performance

Emami Paper Mills has embedded sustainability across its operations through multiple certifications and initiatives. The Company holds ISO 14001:2015 (Environment Management System), ISO 9001:2015 (Quality Management System), FSC certification (License Code C128183), and BIS certifications for Writing & Printing paper, Plain Copier Paper, and Coated Folding Box Board, among others.

Key sustainability highlights include:

• 61% of raw materials were sourced through sustainable sources during the reporting period.
• The Company operates a 7 MW group captive solar power plant under the Group Captive model to reduce fossil fuel consumption.
• Biogas generated from the UASBR (Upflow Anaerobic Sludge Blanket Reactor) is used in the Power Plant as supplementary fuel.
• The Company has participated in PAT (Perform, Achieve and Trade) Cycles I, II, and VII, outperforming notified specific energy consumption targets in each cycle.

PAT Scheme performance is summarized below:

The Company's plant is located at Balgopalpur Industrial Estate, District Balasore, Odisha, which falls within a groundwater-safe zone. No operations are situated in or around ecologically sensitive areas. The Company complies with all applicable environmental laws, including the Water (Prevention and Control of Pollution) Act, the Air (Prevention and Control of Pollution) Act, and the Environment Protection Act, and has reported no non-compliances during the reporting period.

Material Risks and Opportunities

The BRSR identifies 11 material responsible business conduct issues. Key risks and opportunities are outlined below:

Governance, Compliance, and Stakeholder Engagement

Mr. Sushil Kumar Khetan, Whole-time Director & CEO (DIN-00358577), is responsible for the implementation and oversight of all Business Responsibility Policies, reporting to the Board of Directors. The Company's policies cover all nine NGRBC principles and have been approved by the Board. Performance against these policies is reviewed half-yearly by the Whole-time Director & CEO in consultation with Senior Management.

The Company is affiliated with 7 trade and industry chambers/associations, including the Indian Paper Manufacturers Association (IPMA), Indian Newsprint Manufacturers Association (INMA), Confederation of Indian Industry (CII), and Federation of Indian Export Organizations (FIEO), among others. No material fines, penalties, or non-monetary sanctions were reported during FY2025-26, and no data breaches involving personally identifiable information were recorded.

CSR Initiatives and Community Impact

CSR is applicable to Emami Paper Mills under Section 135 of the Companies Act, 2013. The Company's CSR activities are primarily carried out in and around Balgopalpur, Balasore, Odisha, with focus on community development, education, healthcare, livelihood generation, women empowerment, and environmental sustainability. Key beneficiary data for FY2025-26 is as follows:

All CSR projects reported 100% reach within their respective categories. The Company has also voluntarily undertaken a CSR Impact Assessment study by an external expert to assess the impact of its CSR activities and identify areas for further improvement.

Emami Paper Mills delivered a significant improvement in profitability for FY25-26, with EBITDA rising 48.48% to ₹217.18 crore from ₹146.27 crore in the previous year. Profit Before Tax (PBT) surged nearly 2.8 times to ₹93.36 crore, up from ₹33.39 crore, driven by disciplined cost management and a higher contribution from value-added specialty products. Despite a marginal 1% decline in turnover due to industry-wide realisation pressures, the company operated at 100% capacity utilisation. The Board of Directors recommended an equity dividend of ₹3.20 per share and a preference dividend of ₹8 per share for the financial year ended March 31, 2026.

The submission of the Annual Report under Regulation 34 of SEBI (LODR) Regulations, 2015, was filed on August 4, 2026. Dispatch of the report and the notice for the 44th Annual General Meeting is scheduled to commence on August 10, 2026. The audited financial statements were reviewed by Statutory Auditors S K Agrawal and Co Chartered Accountants LLP, with no qualifications or adverse remarks noted.

Financial Performance Highlights

The financial results reflect strong operational execution despite challenging market conditions.

Note: CSR obligation was ₹161.71 lakhs; actual spend was ₹174.26 lakhs.

Operational Drivers and Strategy

Management attributed the earnings growth to strategic pricing initiatives and an improved product mix. The company strengthened its portfolio in specialty papers, including Oil and Grease Resistant (OGR) paper and pharma insert paper, which offer sustainable margins. A shift towards Free On Board (FOB) buying reduced shipping freight costs by approximately 16-17%. Additionally, the upgrade of Paper Machine No. 2, including new headbox and calendaring sections, enhanced product quality and machine productivity. Total production volume reached 3.03 lakh tonnes against an installed capacity of 3.40 lakh tonnes.

What the Numbers Show

The divergence between the 1% decline in turnover and the 48% surge in EBITDA indicates a successful margin expansion strategy rather than volume-driven growth. This suggests that Emami Paper Mills is effectively leveraging its specialty product portfolio and cost-control measures—such as freight optimisation and energy efficiency—to protect profitability amidst subdued realisations in commoditised grades. The high capital expenditure of ₹30.29 crore underscores a continued commitment to operational modernisation, aiming to sustain this margin resilience in future quarters.

Corporate Governance and Dividends

The company transferred 15,050 equity shares to the Investor Education and Protection Fund (IEPF) during the year. As of March 31, 2026, 1,56,493 equity shares remained held by the IEPF Authority. The Board also redeemed preference shares, including 4,80,000 Series II Tranche II OCRPS on January 20, 2026, and 2,70,000 Series II Tranche III OCRPS on March 27, 2026. The dividend payout aligns with the company’s Dividend Distribution Policy under Regulation 43A of SEBI (LODR) Regulations, 2015.